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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Archie Meeties who wrote (60731)	2/5/2010 2:54:37 PM
From: carranza2	Read Replies (1) \| Respond to of 217801

But the notion that there is some sort of default risk on the USD is and has been a ridiculous notion. Oh, I agree with that. But that does not mean that the value of the USD will remain stable. Our enormous public and private debt, not to mention the increase in the money base, guarantees that its purchasing power will decline over time. The likelihood of default is definitely not the only metric. Look at the increasing costs of insuring against sovereign default [hat tip to Real Man]: markit.com

To: Archie Meeties who wrote (60731)	2/6/2010 3:54:35 AM
From: elmatador	Read Replies (2) \| Respond to of 217801

the Chinese currency is undervalued by 25 to 40% compared to the USD and other currencies. The gap is wider than at any time since July 2005, when the Chinese government, under pressure from the Bush administration, decided to do away with the renminbi’s peg to the dollar and allow the currency to float in a narrow band against the dollar and other currencies. The renminbi appreciated 21 percent, but since July 2008 it has remained at the same value — today, one dollar equals about 6.83 renminbi, also called the yuan. nytimes.com